Marshall is considering purchasing one of two potential investments. The first is a SlickRock bond...
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Marshall is considering purchasing one of two potential investments. The first is a SlickRock bond with 14-year maturity and 7% coupon that has a current price of $825. 12. The second option is to buy stock in DryBeach. DryBeach just issued a $2.50 dividend and expects to grow at 3.0%. The current stock price for DryBeach is $26.75. If both investments are fairly priced and he plans to hold the investment indefinitely, which offers Marshall a higher return? The Slick Rock bond, 12.35% > 7.00% The DryBeach stock, 12.63% > 9.25% The DryBeach stock, 12.3596 > 4.63% The SlickRock bond, 9.639 > 2.00%
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